Sunday, August 12, 2012

Facebook: A Fate More Similar To Yahoo Or Google?

iStock_000005038334XSmallEditor’s note: David Cho is CEO and co-founder of Sidebark, the private photo and video sharing service.  Prior to founding Sidebark, he was a leader in Bain & Company’s digital media practice. How much more valuable do you think Facebook is than Yahoo?  Let’s say I gave you 1% of Facebook’s stock.  How much of Yahoo would I have to give you to part with that share?  5%?  10%?  More?  (Or would you just move to Singapore and renounce your U.S. citizenship?) What about Google stock?  Would you make a 1% for 1% trade?  What about 0.5% of Google for your 1% Facebook stake? Well here’s what the stock market thinks: Based on market cap, Facebook is closer in value to Yahoo than it is to Google.  After sliding under $20 per share, just two and a half months after going public at $38, Facebook's market cap hit $45B, closer to Yahoo's $20B than Google's $210B.

Source: http://feedproxy.google.com/~r/Techcrunch/~3/lBxtcueVHIE/

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